Nokia's Problems Haunt Microsoft

Nokia announced sweeping changes, including 10,000 additional job cuts, and cut its earnings outlook for the third time in little over a year. WSJ's Ben Rooney reports. Photo: AP

By

Anton Troianovski,

Sven Grundberg and

Spencer E. Ante

Updated June 14, 2012 7:44 p.m. ET

Nokia Corp. warned Thursday that its cellphone business is quickly deteriorating and that it will cut 10,000 workers, a setback that threatens partner Microsoft Corp.'s mobile aspirations.

The companies bound themselves together last year in a last-ditch effort to compete in a smartphone market dominated by Apple Inc. and Google Inc. Now, Microsoft faces the possibility that the company responsible for two-thirds of its mobile...